Drop Ship Process Memorandum of Understanding - Action Target

Drop Ship Process Memorandum of UnderstandingThis document will serve as a Memorandum of Understanding between of. (“Distributor”) and Action Target Inc. of Provo, Utah (“ATI”) concerning all mattersand transactions where Distributor processes orders and submits to ATI for product shipment directly toDistributor's customers (“Drop Ship”).1. DELIVERY: ATI considers timely fulfillment and delivery of product orders to be of thehighest importance to our customers. We would expect Distributor to submit orders to ATIimmediately upon order placement. ATI will contact Distributor concerning unusual shippingdelays.2. INVOICE PROCESSING: ATI will process orders according to “Vendor Agreement”. Thismay include, but is not limited to Credit (Visa, MasterCard, American Express or Net30. Allorders will be sent to ATI in two methods. The first is fax, (801) 377-8096 and the other isemail, chadb@actiontarget.com. The email and fax will both be addressed to the attention ofChad Burdette.3. SHIPPING OPTIONS: ATI is a large UPS shipper and has obtained favorable rates as a result.To minimize costs, ATI would prefer Distributor to utilize the “Shipping Guidelines” thatcontains previously negotiated rates from packages between 1-150 pounds. Orders over 150pounds, Distributor will call ATI's fulfillment representative for freight quotes. Drop Shiporders can utilize Distributor's UPS or other shipping provider's account if necessary. If ATI isto send the shipment using the Distributor's account, the preferred account provider andnumbers will need to be provided to Chad Burdette, (801) 705-9126 office, (801) 380-9634mobile, (801) 377-8096 fax and chadb@actiontarget.com

4. PRICING & PRICING UPDATES: ATI and Distributor both recognize the potential that theperiod between orders of any given item set up in the ATI system as Drop Ship could be longerthan the frequency of potential price revisions by Distributor. Therefore, it is critical thatDistributor makes any potential price changes to their sales material, which will include allbrochures, handouts, catalogs and website. Any discrepancy not properly addressed byDistributor will result in the difference in cost being removed from any applicable margin perorder.5. RETURNS: ATI would prefer to handle all customer contacts directly, which includes productreturns for any reason. Should Distributor receive a product return directly, ATI requests to becontacted with the details of the situation so that we can proceed with all future customercommunication.6. GENERAL TERMS AND CONDITIONS: ATI General Terms and Conditions of PurchaseOrder will apply to Drop Ship orders as appropriate.Agreed this day of , .DistributorAction Target Inc.By:Name:Title:By: _____________________________Name: __________________________Title: ___________________________